Banks target mid-market with embedded accounting

BankiFi and industry experts held a recent online webinar to examine how banks can help mid-market firms consolidate payments, cash management and invoicing into a single banking environment. The session focused on companies with revenues between £20 million and £500 million and included BankiFi CEO Mark Hartley and moderator Sharon Kimathi, a researcher.

Panel participants described a persistent gap between simple business banking tools and full-scale treasury systems used by large multinationals. Mid-sized companies commonly operate across multiple entities, payment rails and jurisdictions while relying on a mix of ERP systems, third-party payment providers, accounts payable and receivable platforms, and several bank portals.

Speakers outlined an embedded accounting approach in which core accounting and payments functions are built into a bank platform or tightly integrated with customers’ ERPs. Panelists said such integration can reduce manual reconciliation, simplify workflows and centralise finance functions within a single environment.

The webinar highlighted technologies that enable closer integration, including application programming interfaces and open banking connections. Payment orchestration was presented as a way to manage multiple payment rails and providers from a single control point. Banks can either connect to existing ERP and fintech ecosystems or offer consolidated platforms that reduce the number of vendors a company uses.

Regulatory changes were discussed as another factor shaping product design. Mandatory e-invoicing schemes and initiatives like VAT in the Digital Age will alter how invoice and tax data move between businesses and authorities. Panel contributors noted these changes create demand for compliance-linked services and data-handling capabilities from financial institutions.

Attitudes toward data sharing were a recurring theme. Corporates weighed efficiency gains against concerns about control, privacy and transparency. Panelists recommended banks provide clear data governance, permission controls and demonstrable benefits such as improved cash flow visibility and more personalised treasury services to justify access to broader financial data.

On commercial implications, the discussion covered potential new revenue sources for banks through payment orchestration services, e-invoicing processing and advisory offerings. Contributors advised banks to set clearer product strategies for the mid-market, create technical roadmaps for API and platform integration, and develop frameworks to address client data-sharing requirements.

Mark Hartley described the objective as: “reduce reconciliation and operational friction by bringing accounting and payments closer to the bank platform.” The session closed with a call for banks to assess where they should plug into existing systems and where a unified platform would better serve clients with multi-entity and multi-jurisdiction needs.